In conversation at LE25: Brian Niccol and Howard Schultz on reclaiming the third place and delivering performance ‘through the lens of humanity’

• 5 min read
• June 11, 2025

Greeted by a standing ovation and steady roar of applause at Starbucks Leadership Experience 2025 in Las Vegas, chairman and ceo Brian Niccol and founder Howard Schultz reflected on the company's legacy, its future and the enduring importance of Starbucks as a "third place" - a community hub where human connection thrives.

Reclaiming the Third Place

Niccol opened the session by asking Schultz about the relevance of the third place in today's world. Schultz responded by acknowledging global anxiety and uncertainty, noting that Starbucks role as a community anchor is more vital than ever.

"The third place is not something we need to reinvent - it's who we are," Schultz said. "People all over the world are longing for human connection… We are a company that is steeped in humanity. We are steeped in human connection, because of all of you and the people you represent."

Schultz, who led Starbucks from a small Seattle roastery to a global brand with over 40,000 stores and nearly 500,000 partners, emphasized the need to reclaim Starbucks soul. "We're not a company that needs AI to do what we do. It's an enabler. What we need to do, is just be ourselves - be the people that we've been," he said.

"Take it personal. Understand your responsibility to every customer and partner. That's how we win."

Performance Through the Lens of Humanity

Schultz passionately defended the idea that performance and humanity are not mutually exclusive. Reflecting on Starbucks growth from 11 stores in 1987 to 40,000 today, he said:

"We've always been a performance-driven company through the lens of humanity. That's how we create opportunity."

"This is a magical time [to be at Starbucks] … and I believe that when you go back to your store and extend everything you've learned to your partners … we're going to come out of here like a tidal wave!"

The Two Chairs: Partners and Customers

One of the most memorable metaphors from the session was Schultz's "two chairs" concept - a reminder that every decision should consider both the partner and the customer.

"If a decision doesn't exceed expectations for both, we don't do it. That's our responsibility."

Back to Starbucks: Coffee at the Core

Niccol and Schultz discussed the Back to Starbucks strategy, which centers on coffee excellence - the best coffee, served by the best baristas, in the best coffeehouses. Schultz emphasized that Starbucks must remain a coffee-first company.

"When I heard you speak for the first time about Back to Starbucks, I did a cartwheel in my living room!" said Schultz "It's short, it's to the point, and it's exactly the tip of the spear of who we should be, and who we are. And we are above all else, a coffee company."

"The craft of coffee has to be front and center…we must differentiate ourselves through coffee. With coffee as the foundation, there are so many things we can do that create opportunities for the company, but the foundation must be coffee. "Our core purpose and reason for being is to exceed the expectations of one customer and one partner at a time."

The Mind of a Merchant

Schultz recounted his formative trip to Italy in 1983, where he was inspired by the artistry and attention to detail in Italian coffee bars. He urged leaders to embrace the "mind of a merchant" - focusing on quality, a welcoming environment and connection.

"People buy with their eyes. Create a multi-sensory experience; a sense of community that only we can create."

Culture, Standards, and Opportunity

Schultz closed with a call to action for each partner in the arena: be a culture carrier. He stressed that Starbucks success is not an entitlement - it must be earned every day through attention to detail and personal responsibility.

"The culture, the values, the guiding principles, the heritage is what built the brand. The responsibility of everyone in this room is to be a culture carrier. Respect the heritage and tradition, take care of your people, exceed the expectations of your customers and be steeped in coffee."

"Everyone in this room has the power to make a difference. All you have to do is make a personal difference in the life of your partners, the life of your customers, and everything else is going to follow."

A Tidal Wave of Optimism

Schultz ended with a message of hope and determination:

"Our success is not an entitlement - it must be earned" said Schultz, adding, "I've never been more optimistic about Starbucks' future. Take it back. Be true to the coffee. Be true to your partners. Let's surprise the world again."